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1. Introduction
Debtors relate to accruals, invoicing and ownership of assets within your organisation.
As a result, it's important they are set up and managed correctly.
Ask AusFleet Help Desk for assistance if you are unsure.
They work by attaching a Debtor to each Department hierarchy, so any assets belonging to the hierarchy are automatically assigned to that Debtor.
You can change the default Debtor on transactions. For pool car hire bookings, the driver's debtor (from Personnel module) is used for invoicing.
As an alternative, multiple Debtors can be assigned to assets, and expenses are assigned to each based on a predetermined % split.
Which method you use will depend on your organisation's financial policies.
As a further step, Debtors can be assigned to a Debtor Type. This is used to levy specific labour charges and inventory parts mark ups to different customers (Debtors)
E.g. You may wish to charge external customers higher labour rates., so you can allocate those Debtors to "Debtor Type - External".
Each time a R&M job is done where the Debtor is assigned to "Debtor Type -External", the higher hourly labour rates will be applied to timesheets.
More details on these options are given below.
2. Definitions
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Department Hierarchy
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Your "Organisation Chart" - department, branch, region etc. See example below.
This is usually created as part of AusFleet's initial data import service.
•Each asset is allocated to the hierarchy based on its "ownership" in the business
•One or more tiers may be used as business requirements dictate
•Not all levels of the hierarchy have to be used
•Fleet items can only be attached at the bottom level of any hierarchy
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Debtor
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The "customer" to whom costs will be invoiced.
•A debtor is usually attached to a department hierarchy but can be selected manually on each transaction
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Debtor Type
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A way to categorise Debtors into different "Types". An optional classification.
•Specific parts and labour charge rates can be applied to each "Debtor Type"
•Allows different labour charges and parts mark ups to be automatically applied to different classes of Debtor e.g. internal and external
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Transaction Type
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A classification for expenses used for reporting, accruals, invoicing etc. E.g Fuel, Labour, Insurance
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Invoicing Charge Centres
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Cross reference method used for financial interfacing and mapping expenses in AusFleet to external account codes
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3. Single or Multiple Debtors per Asset?
There are two options for managing debtors:
1.Applying one debtor to each asset via the department hierarchy.
2.Attaching multiple debtors to each asset with expenses/invoicing split on a % basis between them
To use Option 2, tick More>>Parameters>>Flags & Settings>>110. This makes the additional tab "Debtors" accessible in fleet module - see here for how to use multiple debtors.
4. How Debtors are Attached to Assets via the Department Hierarchy
This does not apply if using Multiple Debtors.
In this example, there is no cost centre of sub cost centre in the hierarchy so the fleet item must be attached to the "Section" as it is the bottom level of the hierarchy.
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5. Selecting Debtors When Adding a New Asset
If an asset has a Debtor assigned it is used as the default debtor on transactions (except Hire) but can be changed on individual records
If a Debtor is connected to a Department Hierarchy (optional) then only that Debtor can be selected when adding a new asset with that hierarchy (see examples below).
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Debtor Selection When Adding a New Asset
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Scenario 1
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Scenario 2
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6. Understanding the "Department Hierarchy"
More>>>Reference Files>>>Debtors>>>Department Hierarchy
The Department Hierarchy represents the structure of your organisation.
It should include any entities that have or use fleet items that you wish to manage in AusFleet, whether they be internal or external to your organisation.
The six tier hierarchy consists of:
•Department
•Branch
•Region
•Section
•Cost Centre
•Sub Cost centre
•Not all levels of the hierarchy have to be used.
•They can be simple e.g. Department tier only (Internal or External) or complex (multiple tiers) depending on your business needs.
•A "Debtor" may be linked to each hierarchy to control invoicing and accruals. If no Debtor is attached it must be selected manually for each transaction.
Add a Debtor at only one level per hierarchy using the "Edit/View details" button.
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This example depicts a hierarchy consisting of:
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Department:
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City Services
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Branch:
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City Projects
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Region
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Victoria
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Use "Edit/View" Details to allocate a Debtor and enter other information.
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6.1 DBRS Tree View Reference File
A tree view of the hierarchies is available
More>>>Reference Files>>>Debtors>>>DBRSCS Tree View
It is not editable (changes must be made using the Department Hierarchy) but provides an alternative view of the hierarchies for easy reference.
The hierarchy below is represented as a traditional organisation chart/family tree.
A representation of the Tree View in the form of an organisational chart
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7. Using "Debtor Types" to Control Labour/Inventory Charges
More>>Reference Files>>Debtors>>Debtor Types
"Debtor Types" are optional. They allow different labour charge rates and mark-ups on parts to be applied for different types of customers e.g. internal/external.
To set labour rates using Debtor Types, complete the "Hour Type" reference file first (Reference Files>>Repair and Maintenance>>Hour codes)
The "Hour Type" reference file determines which types are chargeable and which are not E.g. Repair Work = Chargeable, Personal Leave = Not Chargeable.
•"Debtor" IS linked to a "Debtor Type":
The labour and parts charges in R&M are as per the Debtor Type unless they are zero, in which case they are as per Inventory (for parts) and Personnel (for labour rates) modules.
•"Debtor" IS NOT linked to a "Debtor Type":
Charges are as per Inventory (for parts) and Personnel (for labour rates) modules.
Examples:
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Debtor Linked to a Debtor Type
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Debtor Not Linked to a Debtor Type
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Debtor "XYZ Ltd"
Debtor Type = "A"
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Debtor "XYZ Ltd"
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Labour charge rate applied:
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Rates entered in "Debtor Type A Labour Charges" will be used in R&M jobs
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Rates entered for the person in Personnel >>Details will be used in R&M jobs
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Parts sell price applied:
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Normal cost price + Debtor Type mark up %
or
Normal sell price + Debtor Type mark up %
"Normal" refers to the prices calculated in Inventory module.
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The sell price for parts used in internal R&M jobs will be as calculated in Inventory module
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End of Chapter
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